Unit
7
Our Economic
Activities
Upon the completion of this unit, students will be able to :
describe the current state, importance, and problems of tourism
industry in Nepal
discuss the condition, importance, and problems of foreign trade in
Nepal
give and account of cooperatives, money, banking, employment and
foreign employment
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7.1
Tourism Industry
Pre-reading Activities
If you were to visit a place in the near future, which place would you choose? What
do you think are the main attractions for you to visit this place? What do you plan to
do there? Think about these questions and share your views with the class.
Reading
All of us want to visit new places, experience new things, and spend life in an
adventurous manner. Human beings love to travel different places. When we travel to
a place for entertainment, learning, religious or any other reasons, it is called tourism.
Those who travel places are called tourists. If we travel to places within our country,
it is called “domestic tourism” and people who travel like this are called “domestic
tourists.” But, if people travel to another country, they are called “foreign tourists.”
As we travel, we need a lot of things such as food, shelter, means of entertainment,
etc. Travelers spend money for food, lodging, entertainment, and so on. As a result,
tourism becomes a means of earning for the destination to provide facilities and
services for tourists. Such services include hotels, restaurants, museums, travel
agencies, tour guides, etc.
Every year, a lot of foreign tourists visit Nepal to enjoy the beauty of the country,
study cultures and languages, climb mountains and trek the hilly terrains.
Nepal Tourism Board registered a tourist arrival record of 1, 173,072 in the year 2018
which is 24 percent more than that of the last year in 2017 which recorded 940,218
tourists.
Current State of Tourism Industry: Since tourism is one of the main sectors to earn
foreign currency that we need to import goods and services from the foreign countries,
Nepal has placed a heavy emphasis on tourism development. Through government
initiative a high level Institute for Tourism and Hotel Management has been established
in 2011. The institute aims to produce skilled human resource to meet the requirement
in the tourism sector. As of now, the institute offers courses on Tourism Management
and Hotel Management affiliated to Tribhuvan University. Besides, there is a Tourism
Board responsible for promoting tourism through promotional activities. The private
sector has also invested heavily in hotels and other tourism related infrastructures.
Nepal Tourism Board (NTB) has also started a campaign Visit Nepal 2020 to draw 2
million tourists by 2020.
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Importance of Tourism Industry: Due to its natural beauty, cultural and linguistic
diversity, Nepal has an immense potentiality of being one of the best tourist destinations
in the world. However, we are yet to develop this sector to attract a large number of
tourists every year. The importance of tourism industry in the overall development of
the country can be stated in the following points.
Earning foreign currency and revenue
Create opportunity for employment
Development of small and cottage industry
Development of infrastructures in rural areas
Increase in trade and trade development
Exchange of arts and cultures promoting national dignity across the world
Problems and Solutions: Despite all the benefits we can reap from tourism,
tourism industry is beset with many problems. They are: lack of transportation and
communication, pollution, lack of skilled human resources, political instability, lack
of standard facilities of hotels and restaurants, and lack of promotional activities.
However, these problems can be solved by:
Establishing tourist centers
Expanding transportation and communication facilities
Promoting tourism in international forums
Maintaining law and order in the country
Ensuring security for tourists
Creating quality facilities and services for the tourists such as banking,
hotels, restaurants
Controlling pollution and producing skilled human resource
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Free the Words
adventurous : exciting and dangerous
terrain : the physical features of a tract of land
affiliate : branch
immense : very great in size of amount
In-class Activities
Describe a place of historical and cultural importance nearby your community. Then,
write what can be done to promote this place as a possible tourist destination.
Exercise
1. Write True or False against the following statements.
a. Tourists are generally people who migrate from one place to another.
b. Tourists are basically people who travel places for entertainment.
c. Tourism is an industry because it involves economic activities.
d. Tourism is an industry because it has grown all over the world.
e. Tourism helps us control pollution.
f. Controlling pollution helps develop tourism industry.
g. Nothing substantial has been done to promote tourism.
h. Tourism helps develop infrastructures in rural areas.
2. Write very short answers to the following questions.
a. What is tourism industry?
b. What is domestic tourism?
c. Who are foreign tourists?
d. Write any two functions of Tourism Board.
3. Write short answers to the following question.
a. What is tourism? Why is it an industry?
b. What are the benefits of tourism for a country like ours?
c. What problems does Nepal’s tourism industry face?
d. What can be done to solve the problems faced by tourism?
e. Who are tourists? What are the types of tourists?
f. For what purposes do tourists come to visit Nepal ?
Community Project Work
Prepare three days visit plan for a friend who is coming to your place from another
district.
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7.2
Foreign Trade
Pre-reading Activities
Take a look at everyone and everything in your class. Make a list of things you notice.
Then, decide how many things are made in countries other than Nepal. Think of
goods made in other countries available for us to buy and consume.
Reading
You must have realized by now we cannot produce all the things we need and use
by ourselves. But then, some people produce things in excess of what they need. We
buy things we need from the market and sell things that we produce in excess. In fact,
the exchange of goods and services between people and groups of people is called
trade. Trade is basically of two types: internal and external. Any trade that takes place
within a country is called internal or domestic trade. In contrast, if trading takes place
between two or more countries, it is called external or foreign trade. When a country
sells its products to other countries it is called “exports” and when it buys from other
countries, it is called “imports.”
For a country to buy goods from another country, that country needs foreign currency.
As a result, such foreign trade is regulated through tariff, custom duty, quota and
monetary policy of the country.
Present Condition of Nepal’s Foreign Trade: Nepal is struggling to control foreign
trade imbalance. Our imports exceed exports, as a result Nepal incurs a heavy deficit
in foreign trade. According to Nepal Rastra Bank, Nepal’s foreign trade deficit stood
at Rs. 76456.90 million in April of 2017. Moreover, almost 66% of foreign trade occurs
with India. We import petroleum products, coal, chemical fertilizer, readymade
clothes, agricultural equipment, vehicles, etc. from India. In return, Nepal exports
clothes, polyester, pipes, stones, sand, and quarries to India. As our exports amount is
very less to what we import from India, Nepal faces a heavy trade deficit with India.
Besides, Nepal also exports tea, woolen products, carpets, and handicrafts to third
countries, especially to U.S. and Germany. Similarly, we import gold, machinery, and
electronic goods.
Importance of Foreign Trade: No country can produce everything it needs. As a result,
in today’s world, there is great importance of foreign trade. Some of the benefits of
foreign trade are as follows:
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Developing countries can import machinery, equipment, technologies,
etc. needed for development.
Countries can expand the markets for their products beyond the national
borders and earn foreign currency.
Foreign trade encourages the utilization of available resources and
promotes local industries.
It helps industrialization and creates employment opportunities.
Foreign trade also helps promote the image of the country across the
world.
Problems: Nepal’s foreign trade, especially because of the huge amount of trade
deficit, faces a lot of problems. Some of the problems are as follows:
Huge amount of trade deficit, specially with India
Lower exports and higher amount of imports
Exports of very limited low-priced goods
Heavy dependency of trade on India (66%)
Lack of diversification of markets for Nepali goods
Lack of quality products to compete in international markets
Open border between India and Nepal, leading to informal trades and
cross-border smuggling
Solutions: These problems can be solved by developing industries that need locally
available raw materials such as agricultural and forest products. We should be able
to get preferential trades from other countries to make Nepali products competitive.
As a land-locked country, Nepal should work towards receiving unconditional transit
and transportation facilities to access international markets. Government can devise
policies such as tax exemption for export-related industries.
Free the Words
excess : more than required
import : bring goods and services from another country
export : sell or send goods and services to other countries
deficit : spending more than earning
transit : way to reach the third country via another country (here)
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In-class Activities
In a group of 4-5 students, make a survey of goods/things used by your friends,
teachers, or at the school. Find out where the goods are made. Then, select at least
three goods and find out how these goods arrive in Nepali market.
Exercise
1. Write very short answers to the following questions.
a. What is trade?
b. What are the main types of trade?
c. What is foreign trade?
d. How is foreign trade regulated?
e. Differentiate between internal and external trade.
f. What is trade deficit?
2. Write short answers to the following questions.
a. Discuss the importance of foreign trade for a country like Nepal.
b. Write down the present condition of Nepal's foreign trade.
c. What can be done to solve the problem of trade deficit in Nepal's foreign
trade?
d. Make a list of goods that Nepal exports to India. Also make a list of goods
it imports from India.
e. One problem with Nepal’s foreign trade is that it heavily depends on trades
with India. Give some suggestions to minimize the dependency on India.
f. What kinds of goods does Nepal export to countries other than India?
What can be done to promote Nepali goods in European and American
markets?
Community Project Work
Working in the same group, make a list of three goods produced in Nepal. Then, do
a little research and find out which possible international markets such goods can be
exported to. Give reasons as to why you think the goods can be marketed there.
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7.3
Currency
Pre-reading Activities
Look at the picture of Nepali currency
note of 500 denomination. Note down
each and every detail in it. What does
each detail suggest? What promise
does the Rastra Bank make? What does
it mean to say “Rastra Bank will pay Rs.
500 upon demand”? Discuss.
Reading
As you can imagine, the note you see above is not
anything in itself. It is not a piece of wealth as a piece of
gold or a bushel of rice. That’s why Nepal Rastra Bank
promises to pay the amount on demand. If you have
this note with you, you have the ability to exchange it
with goods and services you need. Currency derives
its value by being a medium of exchange, a unit of
measurement and a storehouse for wealth. Money
allows people to trade goods and services indirectly,
understand the price of goods (prices written in notes
or coins correspond with an amount in your wallet)
and gives us a way to save for larger purchases in the
future. Currency is valuable only because everyone
knows everyone else will accept it as a form of
payment - so let’s take a look at where it has been, how it evolved and how it is used
today.
In the past, before currency was invented, people still traded. But, they had to
exchange one good with another. For example, if you had excess of rice and you
needed salt, you would exchange rice with salt. This system of exchanging goods is
known as barter system. As the world developed and economic activities increased,
barter system became impractical. As a result, currency was invented to facilitate
208 Oasis Social Studies and Population Education 8
exchange of goods. Initially, some specific goods, animals, leather, cowries were used
as a standard means to exchange goods. These were the first examples of currency.
With development, later on metals such as gold, silver, and copper were used as
money. In modern time, paper currency is popular. Every country has its own money
or currency. Some countries have a common currency such as in Europe, known as
Euro. American currency is called U. S. dollar. In Nepal, the Rastra Bank takes the
responsibility of issuing currency both paper notes and coins.
A country cannot print money indiscriminately. It has to take the permission from
International Monetary Fund (IMF). IMF allows to print money based on the country’s
economy and consumption. The country also has to deposit certain amount of gold or
silver as security against the notes issued.
To import goods from a foreign country, we need foreign currency. We can earn
foreign currency either by exporting goods to foreign markets or working in a foreign
country. These days, foreign employment has become the main source of earning
foreign currency in Nepal. However, the most reliable source of earning foreign
currency is trade and tourism.
Request of Rastra Bank
1. Let's make the habit of folding notes properly. Do not crumple them.
2. Let's not touch the notes with oily, coloured or dirty hands. Dirty hands can spoil
the notes and even may transmit diseases.
3. Let's not tear the notes.
4. Let's not write and staple on the notes.
Free the Words
denomination : the value that a particular coin has
cowries : the shell of a small snail
randomly : haphazardly
In-class Activities
Get into a small group of 4-5 students. Make a list of Nepali notes of various denomination.
Then, make a table to list details of each note. Discuss what each detail means.
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Exercise
1. Write True or False against the following statements.
a. Money itself is wealth.
b. If I have Rs. 500, I have wealth of 500.
c. The value of money is decided by its ability to buy goods.
d. Currency is just a promissory note that guarantees the payment upon
demand.
e. Countries can print as much currency as they need.
f. A country must take permission from IMF to print money.
2. Write very short answers to the following questions.
a. What is currency?
b. How do we determine the value of currency?
c. What is barter system?
d. How does a country print its currency?
e. How does IMF decide to allow a country to print currency?
f. What is foreign currency?
g. What is the most reliable source of earning foreign currency?
3. Write short answers to the following questions.
a. "Money is just a means of exchange." Explain.
b. How has money contributed to economic activities? Discuss.
c. The value of money differs from country to country. Explain.
d. How did currency develop? Explain.
4. Write down the request of the Rastra Bank in a chart paper and display it in
the classroom.
Community Project Work
Imagine a world without money. What would happen, then? How would you buy
and sell things in the absence of money?
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7.4
Banking
Pre-reading Activities
Have you ever been to a bank? Here are a few terms related to banking. Can you
explain what they mean?
deposit; withdrawal; interest; loan; cheque; draft; remittance; ATM
Reading
It was the time of winter holidays. Schools were closed. Ratan’s father, Dev took
him for a visit to Kathmandu. It was the first time that Ratan was travelling places
outside his home village, Aarubari, Kavre. They visited many places in Kathmandu,
Bhaktapur, and Lalitpur. Ratan was enjoying his time in the Kathmandu Valley. When
it was time to return home, Ratan wanted his father to buy many things for him and
for his younger sister, Binita.
Dev checked the money in his wallet. He found the wallet empty. On the way to
New Road, Dev stopped at a place in Putali Sadak. Ratan saw Dev enter a small box-
like room. Dev slid a small plastic card into a machine inside the room. Dev pressed
some buttons and then money popped out of the machine. Ratan watched all this in
amazement. He asked Dev how it was that a machine gave him money. Then, Ratan
and Dev talked about banking. Here is part of their conversation.
Ratan: What’s that? How did you get the money from it?
Dev: See this is an ATM card. ATM stands for automated teller machine. I have
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money saved up in a bank. Whenever I want it, I can withdraw. This card allows me
to withdraw money using this machine. Once I insert the card in the machine, the
machine reads my information. It deducts money from my account and hands it to
me. Isn’t it simple but wonderful?
Ratan: Yes, it is. I never saw things like this. By the way Dev, what is a bank and why
do you keep your money there?
Dev: A bank is just like safe keeper, an intermediary. It receives deposit of money
from those who want to save money. But, it does not just keep the money like in a box.
It lends money to those who need it for business or personal purpose. It pays interest
to depositors and charges interests to debtors. That way a bank also earns money.
Ratan: I don’t understand it. If it keeps others' money and pays interest them how
come it earns money?
Dev: See, usually a bank charges more than it gives. The difference between the
interest rates allows a bank to earn money. For example, if I keep Rs. 1000 in a bank
and it pays me say 4% interest, it actually pays me 40 rupees more than mine. If I take
loan of Rs. 1000, it charges me 10%. So I pay Rs. 100 more than I took.
Ratan: I got it now. That looks fair to me. Is that the only thing a bank does?
Dev: Not exactly. A bank does a lot of things such as receiving deposit, lending
money, advising its customers on financial matters, sending money from one place to
another, helping traders buy goods from foreign markets, etc. But, it also depends on
the type of bank.
Ratan: How many types of banks are there?
Ratan: In Nepal, we have Nepal Rastra Bank. It is the bank of banks. That means
Rastra Bank regulates other banks, acts as the bank of the government, formulates
monetary policies. Other banks are of three types: commercial banks, development
banks, and other financial institutions that also function as a bank.
Banks of Nepal
Nepal Rastra Bank
Commercial Bank Development Bank Finance Companies,
Co-operatives, Micro-
finance Institutions
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Free the Words
deposit : to put money in a bank account
withdraw : to take out money from a bank account
interest : additional money paid for deposit or against a loan
remittance : money sent from one place to another via a bank or a money
transferring agency
teller : a person who handles cash or other transaction in a bank
In-class Activities
The lesson briefly mentions different types
of banks operating in Nepal: Rastra Bank,
commercial banks, development banks, and
financial institutions. Discuss in group or with
your teacher about how each type of bank is
different from another. Then, draw a table
with four columns for each type of bank. Fill in
information related to each type of bank in the
respective column.
Exercise
1. Write very short answers to the following questions.
a. What is a bank?
b. What is an ATM?
c. What are some of the functions of a bank?
d. What main functions does Nepal Rastra Bank perform?
e. How does a bank earn profit?
2. Write short answers to the following questions.
a. What are some of the functions of a bank?
b. Define each of the following banking-related terms.
c. Write major differences between Nepal Rastra Bank and Commercial Bank.
d. Write a brief essay explaining the importance of banking in the development
of a country.
Community Project Work
Visit a financial institution such as a bank, finance company or a cooperative in your
area. Make a list of functions the institute performs.
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7.5
Price Determination and Price Rise
Pre-reading Activities
KATHMANDU, OCT 24
Dried fruit prices have surged in recent days on increased demand ahead of the
Tihar festival when the product is heavily consumed. Prices of most of the dried
fruits have surged by 10-26 percent due to multiple reasons including change in
customs valuation introduced by the government, strengthening of the US dollar
and increased demand, according to retailers.
Source: E-Kantipur
What is this news item about?
According to the news, what factors are responsible for the price rise?
Can you think of any other reasons, not mentioned here?
Reading
We often read news about price rise or we hear complaints about how things are
getting expensive. Often we look at the price list of many goods and wonder how is
price determined. Who decides the price? On what basis is the price of a good set?
Determination of Price
The following factors are responsible for determining the price of goods in the market.
i. Cost of production: An individual, group, firm, or industry produces goods.
Producers need various resources such as labor, capital, raw materials, and tools
to produce goods. For these resources, they have to pay. For example, a farmer
producing oranges has to pay the rent for the land, wages to the laborers, buy
plants and fertilizer. The amount of money required for the production of goods is
called the cost of production. The price of the good is primarily determined by the
cost. The producers can earn profit only if the selling price of the goods is higher
than the production cost. As a result, the price of the goods is dependent on their
production cost.
ii. Demand and supply: If there is a lot of production of a good and few buyers of
the product, the price of a good tends to decrease. If there is less supply of goods
and higher demand, then the price tends to increase. The point at which demand
214 Oasis Social Studies and Population Education 8
and supply meet is the point at which the price of the goods is ideally set. As in
the example of dried fruits in the beginning of this lesson, the high demand of
dried fruits during a festival season seems to have pushed the price higher.
iii. Nature of the market: If there is only one individual or industry producing
a particular goods, such market is known as the monopoly market. In such a
situation, buyers have to pay whatever price is set for the goods as they don’t
have alternative products. In contrast in a competitive market, the same product
may be produced by many producers. In this case, each producer would be
competing with another. And they tend to reduce the price to compete with
other producers.
As we already know, however, price also tends to increase within a span of time.
Then what causes the price to rise? The following are some of the reasons for
price rise:
i. Low supply and high demand: If the supply of a product in the market is low
and its demand is high, price of the good increases.
ii. Monopoly market: As you already know, in a monopoly market, producers can
increase the price of the goods irrespective of the cost of production as there will
be no competition from other producers to sell the same goods.
iii. Increase in the cost of production: If the cost of production of the goods goes
up, producers increase the price to meet the cost of production.
iv. Increase in people’s income and buying ability: If people in a community begin
to earn more, their buying capacity increases. Due to supply of more money in
the market, more buyers will be buying the goods. As a result, the price of the
goods increases.
v. Unhealthy business practice: If there is no proper monitoring system, producers,
retailers, and traders tend to artificially increase the price of goods as they want
to maximize the profit.
Free the Words
determine : to calculate; to decide
monitor : to check that something has fairly been done
supply : to make something available
demand : require; need
monopoly : a complete control of trading some goods in the market
In-class Activities
Get into small groups. Take an object/goods available in your classroom such as the
white board, a chair, table, or anything. Then, find out how much that object costs.
Then, estimate its cost of production and any other cost that it might incur. Deduct the
cost of production from the price your school paid for it. Report what you discovered.
Oasis Social Studies and Population Education 8 215
Exercise
1. Write very short answers to the following questions.
a. What is a price?
b. How is the price of a thing determined?
c. Why does the price of a product fluctuate?
d. Write the relation between demand and supply of goods.
2. Write short answers to the following questions.
a. What factors are responsible for setting the price of a product?
b. What are some of the reasons for the rise of price of products?
c. What is a monopoly market? What are its drawbacks?
d. Give reasons for the following statements :
i. Low supply and high demand of a product raises its price.
ii. Price of a product tends to be higher than the production cost.
iii. An increase in people’s income tends to raise the price of products.
iv. An increase in the bank interest rate for loan tends to increase the
price of products.
Community Project Work
• Visit a general store of your locality and find out:
If the store displays price list; if it does, copy the price list
If products are packaged following the standard such as labeling, dating,
stating the weight, etc.
Then, gather information about the price of six commodities.
• Grocers should put price list openly for the consumers. Likewise manufacturers
send their products with price tag, weight, manufactured date and expiry date.
Visit near by grocery and select any six different items and then fill in the table
given below:
S.N Name of Price Weight (kg/ manufactured Expiry date
goods
litre) date
1
2
3
4
5
6
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7.6
Capital Formation and
Co-operative
Pre-reading Activities
Read the following success story and discuss how the program of micro
financing helped women.
Mahila Sahayogi Sahakari Sanstha (MSSS), a micro-credit provider in Nepal,
helps the women in the country earn money by providing micro credit loans. The
employees of the micro-finance institution come to their doorsteps to provide them
credit and the borrowers do not have to offer their property as collateral.
Parbati Karki had purchased a Jersey cow five years ago by obtaining a small loan
of Rs. 5,000 from MSSS and she now has a successful milk selling business thanks
to the micro-credit loan. She has been able to build a new house by putting together
her income from the milk business and her husband’s earnings.
Thanu Karki said she purchased jewelry from the savings she made by rearing
goats. She had also borrowed Rs. 5,000 from the micro-finance institution to start
her enterprise. Mina Karki had a hard time managing her household expenses on
the small salary of her husband. Now, she is earning money herself by rearing cows
and growing vegetables.
They have formed a women’s group which is mainly responsible for taking decisions
regarding who should be given credit as per their earlier performance regarding the
best utilization of the fund. The women of the village said they had to depend on
others for even small personal expenses. Now they are capable of earning enough
money not only for their personal expenses but also to contribute to the household
expenses.
Source: Global Hand, www.glbalhand.org
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Reading
As the story above indicates, we need
capital (money, fund) to run programs to
generate income and raise the standard
of living. To open a business or even an
industry, one needs fund. One of the
important ways of generating fund or
capital is saving and credit (loan). As the
women have done, with little investment,
they can successfully run income
generating program. For this, saving
is the most important thing. However,
just saving individually is not enough.
For this, we need many people to participate. The participation of many people in a
group for a purpose is called a cooperative. For example, in your class, you decide to
save Rs. 10 everyday from your tiffin money and generate fund to expand the library.
When everyone saves Rs. 10 per day and if you are around 50 students in class, there
will be Rs. 12500 saved in a month. If you continue to save for 10 months, the size of
the fund will be Rs. 125000. Imagine how many books you can buy with that money.
Alternatively, you can use the fund to raise it further by extending loans to individuals
who need money and charging some interest on it. Won’t the fund go on increasing?
Yes. This is how banks and other institutions accumulate capital to invest in industries
and so on. Also think of the benefits of it. If individuals who take the loan from the
fund invest it to produce goods and sell in the market, they too will further generate
income and will be able to save larger amount than they began with.
Free the Words
microfinance : a system of providing services such as lending and saving
money to people who are too poor to use a bank
credit
capital : arrangement that you will pay later
generate
: fund for doing business or makng investment
: to produce
In-class Activities
Make a list of birthdays of each student in your class. Buy a piggy bank (Khutruke).
On the occasion of every student’s birthday, collect money, not more than Rs. 5 by
every individual. Keep the money in the piggy bank. At the end of the year, break the
bank and put the money together. Use the money to buy something you need in your
classroom such as a display board, a projector, a computer, etc. Then, write your own
success story of capital formation like you read in the beginning of this lesson.
218 Oasis Social Studies and Population Education 8
Exercise
1. Write very short answers to the following questions.
a. What is capital?
b. Why do we need capital?
c. What can be done to generate capital?
d. What is a cooperative?
e. Write one benefit of saving.
2. Write short answers to the following questions.
a. Write a letter to the editor of a daily, explaining how programs such as
micro-financing, saving and credit cooperative can empower the poor
people in the rural ares.
b. Make a list of the working areas of the cooperatives.
c. Write down the advantages of the cooperatives.
d. Collect a success story of a “cooperative” and then paste it in the display
broad.
e. You might have also heard about bad practices of cooperatives. Find a news
about the failure of a cooperative and then discuss what the cooperative
should have done to be successful.
Community Project Work
Collect a success story of a 'cooperative' and then paste it in the display board.
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7.7
Employment Status in Nepal
Pre-reading Activities
What do you see in the picture?
Where do you think these young
people are heading?
How would you feel if you had
to leave the country to work in a
foreign country?
Is it good for young people to
leave the country?
Reading
In the picture, you can see a large number of young Nepali leaving the country for
foreign employment. In fact, more than two million young people currently work
in different countries. And our economy is heavily dependent on the money sent
by people working abroad. In one way, it seems good that we are earning foreign
currency from foreign employment. But, in the long term, the country can suffer from
the lack of skilled workers. Why are young people leaving? The main reason is: there
is lack of employment opportunity in the country. Employment is the most basic need
for us to earn a living. Employment refers to a condition in which people are involved
in a work that pays them.
From work, people get salary in the form of cash or kind. To be able to work and get
paid, however, you have to reach a certain age. As a result, people who are between
15 and 59 years are considered active population. A country’s economic progress can
be measured in terms of how many people are employed. There are many sectors of
employment such as agriculture, industry, education, and tourism, etc. Sometimes
people earn on their own without being employed by a company of agency. This is a
case of self-employment.
Employment can be further classified into two main types: domestic and foreign.
The young people you see in the picture are going abroad for work. If you work in
countries other than your own, it is called foreign employment.
220 Oasis Social Studies and Population Education 8
In contrast, if one works within the country, it is domestic employment. If people who
are able to work and who want to work cannot get an opportunity to work, it is a case
of unemployment. Unemployment is a major problem facing the economy. It also
leads to social problems as unemployed people, in absence of work and livelihood,
get frustrated and may engage in activities such as drug abuse and so on.
Look at the table below to get an idea of employment situation in Nepal.
S. N. Details/Categories Percentage
78.3
1 Employed population
2 Unemployed population 1.8
3 Inactive population 19.5
4. Unemployment rate 2.2
5 Households involved in agriculture 76.3
6 Population involved in sectors other than agriculture 23.7
7 Full-time employed population 70
Source: Life standard and Labor force survey, 2008
Problems and challenges related to employment: The following are some of the
problems and challenges related to employment.
Unable to provide employment for additional population that hits the labor
market
Lack of adequate employment information centers
Mismanagement of agencies responsible for managing foreign and domestic
employment
Lack of skilled labor force required by the employers
Unable to create employment opportunities for youth who leave the country for
foreign employment
Lack of preparation, training, and information for those who want to pursue
foreign employment
Mistreatment of people who are engaged in foreign employment by the host
country
Free the Words
heading : moving
agency : a business that provides a particular service
In-class Activities
Organize a debate on “foreign employment is good for Nepal.”
Oasis Social Studies and Population Education 8 221
Exercise
1. Write True or False against the following statements.
a. If you are involved in any work, you are employed.
b. If you are involved in a work that is paid, you are employed.
c. Foreign employment has become the main source of earning foreign
currency.
d. Nepali economy is heavily dependent on the money sent home by those
who work in foreign countries.
e. The labor survey of 2008 shows that a large number of people are
unemployed.
f. The survey shows that a large number of people are inactive.
g. The situation of millions of youth leaving the country for foreign
employment is good for the country in the long run.
2. Write very short answers to the following questions.
a. What is foreign employment?
b. Write any two benefits of foreign employment.
c. How does unemployment create social problem?
d. Define labour market.
3. Write short answers to the following questions.
a. What is employment? What are its main types?
b. Write about the importance of employment for the national economy.
c. What is unemployment? How can the problem of unemployment be solved?
d. List the problems Nepal is currently facing about employment.
e. What is active population ? What is its importance in the development of a nation?
f. Write a letter to the editor of a daily newspaper arguing how dependency
on foreign employment can be dangerous in the future.
Community Project Work
Conduct a mini survey to find out the employment situation of your community. First
develop survey questions or a form. Select 10 to 15 households, randomly. Talk to
people in those households and obtain information about employment. Present your
finding on:
• Total number of active people
• Percentage of people employed
• Percentage of people unemployed
• Percentage of males employed
• Percentage of females employed
222 Oasis Social Studies and Population Education 8
Unit Review
In this unit, we have learnt that:
Tourism industry is one of the important sources of earning foreign currency.
Domestic and foreign tourists contribute to tourism industry.
Government has given high importance to tourism development in Nepal.
Creating employment, earning foreign currency, and helping develop
infrastructures in rural areas are some of the benefits of tourism.
Lack of promotion, lack of proper facilities and security for the tourists
are some of the problems faced by tourism industry in Nepal.
Imports and exports constitute foreign trade.
Currently Nepal faces huge deficit in foreign trade.
Promoting exports is the main measure of reducing trade deficit.
Money is a means of exchange.
Banking is the backbone of economic activities and development.
Banks create credit and generate capital for development and investment.
Cost of production, demand and supply of goods, and the nature of
market are responsible for determining the price of goods.
Saving and credit is the method of forming capital.
Working in a paid job constitutes employment.
Test Your knowledge
1. Write brief notes on the following topics:
a. Tourism b. Employment c. Foreign trade
d. Capital formation e. Determination of price
2. Answer the following questions.
a. How has tourism industry contributed to Nepalese economy?
b. Suggest ways to develop tourism industry further in Nepal.
c. Define unemployment and suggest ways to solve the problem of
unemployment.
d. Developing countries like Nepal can benefit from foreign trade. Discuss.
Community Project Work
1. What do you want to know about cooperatives? Make a list of questions you want
to ask. Then, visit a cooperative in your locality. Ask questions to officials there and
prepare a brief essay on “Cooperatives and Income Generation”
2. Prepare a profile of a place of cultural significance. Then, write a letter to the Ministry
of Culture, Tourism and Civil Aviation seeking the ministry’s help in promoting the
place as a possible tourist destination. (Try finding a place usually not considered for
tourism promotion)
Oasis Social Studies and Population Education 8 223
Unit
8
International Relations
and Cooperation
Learning Objectives
Upon the completion of this unit, students will be able to :
name the neighboring countries of Nepal
describe Nepal’s mutual cooperation with neighboring countries
introduce United Nations and discuss Nepal’s role in the UNO
outline Nepal’s diplomatic relations with other countries
discuss current affairs related to Nepal’s international relations
224 Oasis Social Studies and Population Education 8
8.1
Our Neighbouring Countries
Pre-reading Activities
Write names of at least three neighbours of your family. Then, make a list of events
or activities that you participate with the neighbours. Explain what makes your
relationship with the neighbours friendly. What should each family do to strengthen
the relationship with each other in your neighbourhood?
Reading
Like your neighbours in your community, nations also have their neighbours. Just
like you want to have a good relationship with your neighbours, nations also want to
establish good relationship among each other. Just as your family's good relationship
with neighbours depends on mutual cooperation, help, and cordiality, the relationship
between nations is also shaped by mutual cooperation.
Nepal is a landlocked country situated between China and India. As a result, Nepal’s
relationship with her immediate neighbours is very important. Nepal has been
maintaining a very friendly relationship with both countries and continues to work
towards developing mutual cooperation, support, and friendly relationship.
Oasis Social Studies and Population Education 8 225
Nepal’s foreign policy guides her relationship with the neighbours. Our foreign policy
is based on the principle of non-alignment, five principles of peaceful co-existence,
United Nations’ Charter, international law, and world peace. So far, Nepal has
diplomatic relations with 138 countries. Moreover, Nepal has been an active member
of international and regional organizations such as Non-Alignment Movement,
United Nations, and South Asian Association for Regional Cooperation (SAARC).
China, India, Pakistan, Bangladesh, Sri Lanka, Bhutan, Maldives are Nepal’s neighbouring
countries. Nepal has maintained a cordial relationship with her neighbours. Nepal is
also a founder member of the SAARC. Since the SAARC Summit held in Kathmandu
on November 26-27, 2014, Nepal has assumed the role of the Chair of the SAARC. The
SAARC has promoted the regional cooperation among the member countries.
Similarly, countries such as Japan, China, India, U.S., Britain, Germany, France,
Denmark, Netherlands, Norway, etc. have been helping Nepal in her development
by providing financial and technological support. Moreover, thousands of Nepali
students have been studying in the universities and colleges of U.S., India, Canada,
Germany, Australia, and France. Similarly, thousands of Nepali youths work in many
countries, including Saudi Arabia, United Arab Emirates, Japan, Malaysia, Korea,
and other countries. Nepalese working in foreign countries remit money to Nepal
which has greatly helped the Nepalese economy.
Because of Nepal’s friendly relations with other countries, we are able to learn about
the cultures, societies, languages, and technologies. We are also able to familiarize
people living in other countries with Nepal’s culture, geography, languages, and
society. Such exchanges of ideas between countries promote understanding, good
feeling, and mutual cooperation. While technologies such as the Internet, television,
and media have enabled us to learn about the world, they also allow us to promote
our national image in the world.
Free the Words
mutual : affecting two or more people or parties equally
cordial : very intimate
non-alignment : a position of remaining neutral
co-existence : living together
cooperation : help and support to each other
In-class Activities
Find at least five countries other than the SAARC nations that Nepal has diplomatic
relations with. Then, prepare a brief profile of each country. In the profile, include:
Geographical information
Land area, size of population
Major economic activities
Religion, culture, and language
Any other interesting information
226 Oasis Social Studies and Population Education 8
Exercise
1. Write very short answers to the following questions.
a. What do you mean by friendly nations?
b. What is Nepal's foreign policy based on?
c. What is non-aligned movement?
d. Write any two benefits Nepal has got due to its friendly relationship with
other nations.
2. Write short answers to the following questions.
a. Explain Nepal’s foreign policy in brief.
b. Write names of the member countries of the SAARC. Give a brief
introduction to the regional organization.
c. How has Nepal maintained friendly relationship with her neighbours?
d. Write about Nepal’s role in world affairs, specially as a member of the
United Nations and the SAARC.
e. “Nepal has to continue its friendly relations with its immediate neighbours:
China and India.” Give reasons.
f. Make a list of all the countries mentioned in the lesson and collect their
national flags. Also mark up each nation in the world map. Surf the Internet
to find news and articles related to Kathmandu SAARC Summit held in
November 2014. Read them carefully before you write a short description
about the impression you get.
g. Find out the information of our friendly nations from different sources and
present it in the class.
S.N. Name of Continent Capital Major Currency
countries language
Community Project Work
Make a list of all the countries mentioned in the lesson and collect their national flags.
Also make up each nation in the world map.
Oasis Social Studies and Population Education 8 227
8.2
United Nations and Its Organs
Pre-reading Activities
2 January, 2014 - Today, as the six-month grace period for the full and unconditional
surrender of the Democratic Forces for the Liberation of Rwanda (FDLR) armed
group expires, the United Nations and its partners urged that “all necessary
measures” be taken to disarm the rebels, who have had a long history of heinous
crimes in the Democratic Republic of the Congo.
Source: UN News Letter
Read the news about the United Nations and discuss the following questions.
What has happened in Congo?
What role is the UN playing to solve the Congo conflict?
From the news, what can you say about the function of the UN?
Reading
The United Nations is an international organization founded on October 24, 1945
after the Second World War by 51 countries committed to maintaining international
peace and security, developing friendly relations among nations and promoting social
progress, better living standards and human rights. The concept of the formation of
the UNO was brought by the then US President Franklin Roosevelt and British Prime
Minister Winston Churchill when the Second World War was going on. Both of them
met in a warship in the Atlantic Ocean and signed a treaty on August 14, 1941. This is
called Atlantic Charter. Later,the same charter gave birth to the UNO. Its head quarter
is in New York.
228 Oasis Social Studies and Population Education 8
Due to its unique international character, and the powers vested in its founding Charter,
the Organization can take action on a wide range of issues, and provide a forum
for its 193 member states to express their views, through the General Assembly, the
Security Council, the Economic and Social Council and other bodies and committees.
The work of the United Nations reaches every corner of the globe. Although best
known for peacekeeping, peace-building, conflict prevention and humanitarian
assistance, there are many other ways the United Nations and its System (specialized
agencies, funds and programmes) affect our lives and make the world a better place.
The Organization works on a broad range of the following issues:
sustainable development
environment and refugee protection
disaster relief, counter terrorism
disarmament and non-proliferation
promotion of democracy, human rights, gender equality
United Nations has the following six Organs :
General Assembly: It is the main organ of
the UN and is composed of representatives
of all member states. It functions like
a parliament. The work of the United
Nations depends largely on the mandates
given by the General Assembly. Here, each
member nation has right to one vote. It
approves the budget of the UNO.
Security Council: The Security Council
has primary responsibility for the
maintenance of international peace and
security. It has 15 members, among which five are permanent members. Those five
permanent member are the USA, Baitain, France, Russia, and China. The other 10
temporary members are elected for a term of 2 years. The five permanent members
enjoy the veto power through which any permanent member can reject the decision
made by the General Assembly or the Security Council. Each member has one vote.
Under the Charter, all member states are obligated to comply with Council decisions.
The Security Council also recommends to the General Assembly the appointment of
the Secretary-General and the admission of new members to the United Nations. It
also take major decisions such as mobilization of peace keeping force, blockade to
any nations, etc. And, together with the General Assembly, it elects the judges of the
International Court of Justice.
Economic and Social Council (ECOSOC): It is the principal organ to coordinate the
economic, social and related work of the United Nations and the specialized agencies
Oasis Social Studies and Population Education 8 229
and institutions. Voting in the Council is by simple majority; each member has one
vote. There are altogether 54 member nations of this body. Every year 18 new member
nations are elected for a term of 3 years. ECOSOC also has an Executive Assembly
formed of its member nations.
Trusteeship Council: It was established in 1945 to provide international supervision
for 11 Trust Territories placed under the administration of seven Member States, and
ensure that adequate steps were taken to prepare the Territories for self-government
and independence. By 1994, all Trust Territories had attained self-government or
independence. Its work completed, the Council has amended its rules of procedure
to meet as and when occasion may require.
International Court of Justice: Located at the Hague in the Netherlands, International
Court of Justice is the principal judicial organ of the United Nations. It settles legal
disputes between states and gives advisory opinions to the UN and its specialized
agencies. Its statute is an integral part of the United Nations Charter.
Secretariat: It carries out the day-to-day work of the Organization. It services the
other principal organs and carries out tasks as varied as the issues dealt with by the
UN: administering peacekeeping operations, surveying economic and social trends,
preparing studies on human rights, among others. Every five year, a Secretary General
is elected from the Assembly, who heads the Secretariat. The present Secretary General
is Antonio Guterres from Portugal.
Source: Adapted from UN Webpage www.un.org
Free the Words
unconditional : without any limitation; without any set terms and conditions
heinous : morally bad
vested : given; mandated
dispute : quarrel; conflict
statute : a law passed by a parliament or council; law formally written
down
non-proliferation : a limit to the increase in number of nuclear and chemical
weapons
counter-terrorism : action taken to prevent terrorism
In-class Activities
Divide the class into six groups. Each group discusses one agency of the United
Nations. Try finding more information about each body than mentioned in the lesson.
Take help of your teacher if you require.
230 Oasis Social Studies and Population Education 8
Exercise
1. Write very short answers to the following questions.
a. Name the largest international organization in the world.
b. What is Atlantic Charter?
c. What is the current members of the United Nations?
d. Write the name of the organ of the UNO which is currently inactive.
e. Name the present Secretary General of the UNO.
2. Write short answers to the following questions.
a. What is the United Nations? How was it formed and when?
b. What are the main functions of the United Nations?
c. Name the agencies of the United Nations and briefly write about one of the
agencies.
d. What is “Veto Power”? Who has the power to use the Veto?
e. Research and find examples of the United Nations performing its functions
such as counter-terrorism, non-proliferation, and sustainable development.
Write in detail about one of the functions.
Community Project Work
Read the following news.
The UN Security Council strongly condemned North Korea's "highly provocative"
ballistic missile test on Friday and demanded that Pyongang immediately halt
its "outrageous actions" and demonstrate its commitment to denuclearizing the
Korean peninsula.
The UN's most powerful body accused North Korea of undermining regional
peace and security by launching its latest missile over Japan and said its nuclear
and missile tests "have caused grave security concerns around the world" and
threaten all 193 UN member states September 15, 2017, UN Agency
a. Aalyze the news and briefly write the problem North Korea poses for security
and peace in the world.
b. Do some research about the incident mentioned in the news and find out what
measures have been taken to thwart North Korea's nuclear ambition.
Oasis Social Studies and Population Education 8 231
8.3
United Nations and Nepal
Pre-reading Activities
Nepal is currently 7th largest troop and police contributor to the United Nations
peacekeeping operations (as of November 2012). Nepal has conveyed its willingness
to provide up to 5000 military peacekeepers at the request of the United Nations.
Nepal has a stand-by arrangement with the United Nations for 2000 troops for
peacekeeping purposes. So far, 68 Nepalese peacekeepers have sacrificed their
valuable lives for the cause of world peace and security while serving in the peace
missions under the UN umbrella.
Source: Ministry of Foreign Affairs
As the information above shows, a large number of Nepalese security forces are
deployed under the UN in various conflict areas in the world. It also states that 68
Nepalese peace-keepers have been killed during the mission. Discuss what benefits
you think Nepal gets by contributing to world peace.
Reading
Nepal received the membership of United Nations
on December 14, 1955. Ever since, Nepal has been an
active member of the UN. In fact, the Constitution of
Nepal mentions that Nepal’s foreign policy will be
guided by the UN Charter. Nepal has significantly
contributed to the UN in establishing peace and
promoting economic and social development. UN
and Nepal have closely worked to implement the
vision and programs of the UN. The following are
the main areas of cooperation between the UN and
Nepal.
Participation in peacekeeping mission: Nepal’s
contribution to the UN’s peacekeeping mission
began in 1958 and since then Nepal has been
helping the UN in its mission to keep peace around
the world, including in Lebanon, Haiti, Sudan,
Iraq, Somalia, Congo, and Ivory Coast. the UN has
232 Oasis Social Studies and Population Education 8
recognized the role of Nepal in its endeavor to promote peace in the world. The work
of Nepalese security forces has been praised all over the world. Scores of security
personnel have also sacrificed their lives for the sake of world peace.
Implementation of treaties and conventions: Nepal has signed various treaties
and conventions such as disarmament treaty, declaration of universal human rights,
preservation of cultural heritage, convention of rights of child, and United Nations
convention against transnational organized crime, etc. As per the UN declaration
of universal human rights, Nepal has established an independent Commission of
Human Rights.
Implementation of economic and social programs: For economic and social
development, Nepal has implemented programs related to economic and social
development initiated by the specialized bodies of the UN. For example, Nepal is
working in partnership with other donor organizations to achieve the millennium
development goals set by the UN. These goals include: reduction of poverty, prevention
of AIDS, and primary education to all. Moreover, using various international forums,
Nepal is raising voice for the solution of the problems created by conflicts and natural
disasters.
Membership of specialized organs of the UN: Nepal is also an active member of
various UN agencies and bodies such as World Food Organization (WFO), International
Labor Organization (ILO), United Nations Fund for Children (UNICEF), United
Nations Development Programme (UNDP), World Health Organization (WHO), and
United Nations Educational, Scientific, and Cultural Organization (UNESCO). As
an active member of these bodies and agencies, Nepal is running various programs
initiated by these organizations. It also worked as a Vice Chairman of the General
Assembly in 1958,1967,1970,1974,1983,1988 and 2001 A.D.
UN’s role in peace building in Nepal: In request of Nepal government, the UN had
worked to bring the Maoist conflict to a peaceful conclusion. Under United Nations
Mission to Nepal, the UN had worked to create peaceful environment, specially for the
management of weapons. TheUN also worked as the observer of the first Constituent
Assembly (CA) election to ensure that the election was fair and impartial.
Nepal’s role in the UN Security Council: Nepal has worked as the temporary member
of the UN Security Council twice, between 1969-70 and 1988-89. During her tenure,
Nepal played an important role to solve international conflicts.
Free the Words
charter : main law
initiate : to begin
millennium : a period of thousand years
Oasis Social Studies and Population Education 8 233
In-class Activities
Divide the class in small groups of 4-5 students. Each group chooses one specialized
agency/organization such as WHO, UNESCO, ILO. Then it prepares a report on the
programs run by this UN organization in Nepal.
Exercise
1. Write very Short answers to the following questions.
a. When did Nepal become the member of the UN?
b. What is peacekeeping mission?
c. When did the peacekeeping mission begin?
d. How has Nepal given due respect to international treaties?
e. What are the goals set by the UN to achieve sustainable development.
f. What is United Nations Mission in Nepal (UNMIN)?
2. Write short answers to the following questions.
a. How has Nepal contributed to promote peace in the world? Explain.
b. What are some of the sustainable goals set by the UN?
c. How have the UN and its organizations contributed to the development of
Nepal? Give examples.
d. Write names of at least five specialized UN agencies or organizations that
are currently running programs in Nepal.
e. Write a letter to Antonio Guterres, the Secretary General of the UN,
thanking him for the contribution the UN has made for the promotion of
peace in the world.
Community Project Work
If you have Internet connection, go to the home page of United Nations Mission in
Nepal (UNMIN) and prepare a report on what special tasks UNMIN performed in
Nepal. If you don't have access to the Internet, go through newspapers and collect
information to support your report.
234 Oasis Social Studies and Population Education 8
8.4
Diplomatic Missions
Pre-reading Activities
Look at the picture. What is it? What this document is for? Discuss in
class.
Reading
A diplomatic mission which usually denotes
the resident mission is an office of a country
‘s diplomatic representatives. Countries that
have diplomatic relations with other nations
establish their embassies, consulates or missions
to promote friendly relationship between each
other. Nepal has also opened embassies in
countries she has diplomatic relationship with.
As of September 2019, Nepal has established
diplomatic relations with 168 countries across
the globe. Ambassadors are appointed to head the embassies. In Nepal, ambassadors
are appointed by the President on the recommendation of the government. Officials
are also appointed to help the ambassador and carry out the daily administrative and
other works. Generally the offices of the diplomatic mission are centered to the capital
city of the nation. The Ministry of Foreign Affairs is responsible for managing officials
in embassies, consulates, and foreign missions.
Just as our embassies are established in other countries, we also have embassies of
other countries. Any exchange of information between countries is done through
these embassies. If we want to travel to other countries, we need to obtain a permission
to travel. The permission is called “visa.” Embassies also issue visa for travelers.
However, we do not need visa to travel to India. It is mostly because people of these
two countries have been travelling across the borders without any formal documents.
Diplomatic offices also look after the security and wellbeing of their citizens in the host
country. They also play a vital role during the signing of treaties and understanding
between the countries. Similarly, embassies also coordinate and manage formal travel
of high level officials and heads of the government or nation. Embassies, thus, work
as the bridge between two countries.
Oasis Social Studies and Population Education 8 235
People working in the diplomatic offices should work remaining within the limits of
diplomatic norms. Otherwise, the relationship between the two countries may sour.
Free the Words
embassy : a body of diplomatic representatives; the official residence of
ambassdor an ambassador
: an official envoy; the highest ranking representative of a country
residing in another cou
In-class Activities
Divide the class in small groups of 4-5 students. Each group chooses one specialized
agency/organization such as WHO, UNESCO, ILO. Then it prepares a report on the
programs run by this UN organization in Nepal.
Exercise
1. Write very short answers to the following questions.
a. What is diplomatic mission?
b. How are ambassadors appointed in Nepal?
c. What is visa?
d. Why do we not need visa to travel to India?
e. Write the major task of diplomatic offices?
f. Currently with how many nations has Nepal established diplomatic
relations?
2. Write short answers to the following questions.
a. What are the main functions of an embassy? Write in points.
b. How do embassies promote good relationship between two countries?
Explain.
c. What is diplomatic norm? What happens when the norm is broken?
d. Go to the webpage of Ministry of Foreign Affair and make a list of Asian
and European countries that have diplomatic relations with Nepal.
Community Project Work
List any fifteen countries where Nepalese embassies have been established.
236 Oasis Social Studies and Population Education 8
8.5
Nepal’s Contribution to
International Affairs
Pre-reading Activities
What do you know about the SAARC? Nepal had (November 26-27, 2014) hosted the
SAARC Summit in Kathmandu. Brainstorm on “Kathmandu SAARC Summit, 2014”
and write whatever comes to your mind when you think about the topic. Put your
ideas on the board and discuss.
Reading
The SAARC Summit held in Kathmandu showed Nepal has played an important
role in international affairs. Nepal’s introduction to international arena has been very
recent one. Before 2007 BS, Nepal remained in isolation as there was autocratic Rana
regime. During the Rana regime, Nepal had relationship only with Britain and British
India. After the fall of Rana regime in 2007 BS, Nepal began to establish diplomatic
relations with other countries of the world. Now, Nepal has diplomatic relations with
164 countries. Through her diplomatic relation and participation in various world
organizations and forums, Nepal has been significantly contributing to international
affairs.
Nepal and Non-alignment Movement: After the World War II, two prominent power
blocks appeared in world politics: one group known as NATO headed by United
States and another, known as WARSA Pact, headed by the then USSR. Non-Aligned
Movement arose as a response to these prominent groups. States grouped under
Non-Aligned Movement refused to formally join NATO or WARSA. As of 2019, there
are 120 members and 25 observers in this movement.
The organization was founded in 1961 in Belgrade. The organization follows the
following five principles:
1. Each member state must recognize and respect the sovereignty of other nations.
2. Each member nation must respect the territory of other nations.
3. No member state should interfere in the internal affairs of the other nations.
4. All political crises and disputes must be settled by peaceful means, and
5. Each member state must contribute to the promotion of world peace, peaceful
co-existence, and progress of humanity.
Oasis Social Studies and Population Education 8 237
As a founding member, Nepal has been participating in the organization ever since
its first Summit held in Belgrade in 1961. Nepal has also adopted non-alignment in
her foreign policy.
Nepal and the UN: As an active member of the United Nations, Nepal has played
a significant role in promoting world peace. In 1961, Nepal became the chair of
the investigation committee to investigate into the air crash in which then General
Secretary of the UN, Dag Hammarskjold, was killed. Nepal also became a temporary
member of the UN Security Council twice, between 1969-1970 and 1988-1989. During
her tenure, Nepal played significant roles in solving international disputes. Over the
last 60 years, Nepal is contributing to the UN Peacekeeping Missions, by sending
Nepali security personnel in different places to maintain peace. So far, Nepal has
participated in and contributed to 37 UN peacekeeping missions, including in
Lebanon, Haiti, Somalia, Iraq, Sierra Leon, Congo, East Timor, Liberia, and Sudan.
Nepal and the SAARC: Nepal is an active member of the South Asian Association for
Regional Cooperation (SAARC), which is an economic and geopolitical organization
of eight countries of South Asian region—Bhutan, Bangladesh, India, Nepal, Pakistan,
the Maldives, Sri Lanka, and Afghanistan. Since the first Summit held in Dhaka in 1985,
Nepal’s contribution in promoting regional cooperation among South Asian nation
has been very important. The SAARC Secretariat is located in Kathmandu. Recently
18th SAARC Summit was held in Kathmandu and Nepal is currently the chair of
SAARC. The Kathmandu declaration highlights the notion of “deeper integration for
peace and prosperity.” Beside it, Nepal has also been the member of World Trade
Organizaton (WTO) and BIMSTEC.
Free the Words
declaration : a formal statement
integration : combining or bringing together
regional : related to a region
sovereignty : free to govern itself
founding : establishing
In-class Activities
Welcoming all the heads of state and government in his 18th SAARC Summit
inauguration speech, the Prime Minister Sushil Koirala stressed on the need of
exploring the abundant opportunities that lie in the region. Koirala also called for
making the SAARC more powerful and meaningful region.
Discuss what those opportunities can be in the South Asian region? Make a list of
possible areas of cooperation that the SAARC member nations can explore.
238 Oasis Social Studies and Population Education 8
Exercise
1. Write True or False against the following statements.
a. Nepal was active in international affairs during the Rana regime.
b. Nepal was rewarded a membership to Non-Alignment Movement (NAM)
for her participation in World War II.
c. Nepal has diplomatic relations with 138 nations.
d. Nepal has worked as a member of the UN Security Council twice.
e. Non-Alignment Movement emphasized not being a part of any two power
blocks.
f. The first conference of NAM was held in Bandung.
2. Write very short answers to the following questions.
a. Why was Nepal unable to contribute to world affairs before 2007 BS?
b. Why was NAM established?
c. What is NATO?
d. What is WARSA?
e. When did Nepal first participate in an international conference?
f. When did Nepal become the temporary member of the Security Council?
g. Differentiate between WTO and BIMSTEC.
3. Shor answer questions.
a. What are the five principles of NAM? Explain.
b. Briefly write about Nepal’s contribution to the UN.
c. Briefly state Nepal’s contribution to the SAARC.
d. How have Nepal Army and Nepal Police been helping in establishing
international peace and security? Mention in short.
e. Write short notes on :
i. Nepal and the UNO
ii. Nepal and Non-Aligned Movement (NAM)
iii. Nepal's Contribution to World Peace
Oasis Social Studies and Population Education 8 239
Unit Review
In this unit, we have learnt that :
Nepal has friendly relationship with many countries of the world.
China and India are Nepal’s immediate neighbours.
Nepal is a founder member of the SAARC.
Because of our friendly relationship with other countries, we are able to
learn about their cultures.
The United Nations is the most important world organization that
promotes peace in the world.
The United Nations has six main bodies: General Assembly, Security
Council, Economic and Social Council, Trusteeship Council, International
Court of Justice, and the Secretariat.
Nepal has been contributing to the UN missions for peacekeeping.
As a member of the UN, Non-Aligned Movement, and the SAARC, Nepal
has been significantly contributing to world affairs.
Test your Knowledge
Answer these questions
1. Why is Veto power given to only five permanent members of the Security
council?
2. List out the name of the General Secretaries of the UNO from the beginning to
till date.
3. List out the major functions of the diplomatic mission.
4. Has Non - Aligned Movement become successful in its mission? Write in brief?
5. Compare the international relations of Nepal before and after 2007 B.S.
6. On Bhadra, 2070 the rebels in Damascus, the capital city of Syria accused the
government using chemical weapons. The UNO investigated the case and
proved the use of chemical weapon. This could have adverse effect on the
regional peace and security. The UN Security Council decided to destroy the
chemical weapons and prohibit the production and supply of such weapons in
the future.
What is the major concern of the above paragraph? Discuss in the class
240 Oasis Social Studies and Population Education 8
Unit
9
Introduction to
Population Education
and Demography
Learning Objectives
Upon the completion of this unit, students will be able to :
describe demography and measurement of demographic indicators
discuss migration and reasons of migration
Oasis Social Studies and Population Education 8 241
9.1
The Concept of Demography
Pre-reading Activities
As you know, the student population of a school keeps changing. Discuss and write
the reasons why the number of students in a school changes.
Reading
What is demography?
The word “demography” comes from Greek language. It is made of two words:
“demos” and “graphy.” “Demos” means people and “graphy” means writing,
description or measurement. Thus, “demography” simply refers to the study,
measuring, recording the population. In other words, demography is a scientific study
of a population. The word ‘demography ‘ was first used by a Belgium citizen,Achilles
Guillard. John Grant, a British intellectual is considered as the pioneer of demography.
He had made an important study on death rate. Demography emphasizes on the
statistical aspect of population. In population study, various aspects of population
are studied. Population studies, as an academic subject, was developed in the 1960s
and 70s. The study of population informs us about the effects and consequences of
population growth.
242 Oasis Social Studies and Population Education 8
In demography, birth, death, and migration are the most important factors as these
three elements bring changes in the population size of a country.
Components of demography
The following are the main components of demography:
1. Major Demographic Processes: Birth, death, and migration are the major
aspects of demography.
2. Population Statistics: Statistics plays a vital role in the study of population.
We have to take help of population statistics to study the birth rate, death rate,
and migration pattern of a given area such as zones, districts, and a rural or city
area.
3. Population Distribution: Usually, there tends to be a pattern of population
distribution in a given area. In some areas, population seems to be concentrated
whereas in some areas it is scattered. For example, in Nepal in comparison to
Himalayan or hilly regions, population of Terai region is greater and denser.
4. Causes of population growth: Demography places a heavy emphasis on the
reasons for population growth. Only after a thorough understanding of the
reasons of population growth, we can formulate strategies to find solution to
the problem.
5. Consequences of population growth: The growth of population impacts a
range of phenomena such as food, health, employment, migration, education, and
entertainment. As the population grows, the available resources have to be utilized and
distributed among the population. This often leads to exploitation of resources as well.
6. Sexual and reproductive health education: Demographic study also includes
sexual and reproductive health education. The anatomy of human body, birth,
family planning, etc. are part of reproductive health education.
7. Population policies and programs: Every country devises policies and
programs to manage its population. Demography also includes the study of a
nation’s policies and programs related to population management.
Free the Words
pioneer : beginner
anatomy : the study of the structure of a human body.
Oasis Social Studies and Population Education 8 243
In-class Activities
Imagine that your classroom is a society and the number of students its population. If
you were to study the population of your class and its pattern, what would you have
to focus on? Maybe, you want to know the gender distribution, meaning how many
are male and how many female. You also want to know which part of the country
each student is from, that is, migration pattern. Probably, you might also want to
know the age-specific information, etc. Take a quick survey and find out about the
age, gender, and migration pattern of your classroom population. Now, you have
done the demographic study.
Exercise
1. Write long answers to the following questions.
a. What is demography? Why is demographic information important? List
the components of demography and explain each component.
d. Why do you think demographic study also includes sexual and reproductive
education? Explain.
Community Project Work
With the help of your instructor, prepare a questionnaire about birth, death, and
migration. Using the questionnaire you have prepared, survey at least 10 households
of your community. Prepare a brief report on the demography of your community,
explaining birth rate, death rate, and migration pattern.
244 Oasis Social Studies and Population Education 8
9.2
Fundamental Measurement
of Demography
Pre-reading Activities
On the basis of what you studied in the previous lesson, freely write for 5 minutes
on “Demographic Processes,” explaining how these processes bring changes in
demographic composition of a society.
Reading
Fertility, mortality and migration are demographic processes, which determine
the changes and composition of a population. In other words, birth, death, and
migration are elements of demography. However, there is a slight difference between
the element and the process. For example, fertility is a process whereas birth is an
element. The measurement of population is a process in which the birth rate, death
rate, and migration rate are calculated. In this sense, demographic measurement is to
calculate the rates of birth, death, and migration.
Fertility: Fertility refers to the total
number of babies born out of a woman
who is between 15 to 49 years. The
following are the three methods of
measuring fertility:
Crude Birth Rate: Crude Birth Rate
(CBR) is the most common method
of measuring fertility or birth rate.
Crude Birth Rate (CBR) is defined as
the total number of live birth in a year
per 1000 mid year population of the
same year. CBR is calculated using the following formula:
Number of live births in a year (B)
CBR = Total mid-year population (P) x 1000
Age-specific Fertility Rate (ASFR): The number of births occurring during a given
year or reference period per 1,000 women of reproductive age group classified in
Oasis Social Studies and Population Education 8 245
five-year age groups is age-specific fertility rate. Generally, it has been found that
women aged between 20-29 years have high fertility.After that the fertility rate slowly
decreases. While calculating it, the fertile women are placed in a group of 5 years gap.
The ASFR is calculated as: ASFR = Ba × 1000
Where: pfa
Ba = Total number of live birth by a specific age group of women.
Pfa = Total mid-year population of female of a specific age group.
Total Fertility Rate (TFR): TFR is defined as the total fertility of women in her total
child bearing ages (15–49 years). Simply, this is the sum of ASFR.
The TFR is calculated as:
TFR = ΣASFR × 5
1000
Where, ΣASFR = Summation of Age Specific Fertility Rate
Free the Words
childbearing : relating to giving birth to children
In-class Activities
In village A, the birth rate is higher than the national average. In village B, the birth
rate is lower than the national average. Discuss what could be the reason for each
village to have either lower or higher birth rates.
Exercise
1. Give reasons.
a. If the number of married women of age between 15 to 49 is high, there will
be higher Crude Birth Rate.
b. In a remote village, there are no employment opportunities. The population
growth rate in the village is lower than the national average.
c. Five years ago two large industries were opened in my village. Now the
population has increased.
246 Oasis Social Studies and Population Education 8
2. Write long answers to the following questions.
a. What are demographic processes? Briefly explain each of them.
b. What is Crude Birth Rate (CBR)? How is it calculated? Give examples.
c. What is Age-specific Fertility Rate (ASFR)? How is it calculated?
d. What is Total Fertility Rate? How is it different from Crude Birth Rate?
e. In 2068 B.S, population of a village was 7500 and the number of live
births in the same year was 75. Find out the Crude Birth Rate (CBR) of the
village.
f. Suppose in certain district, the mid-year population was 3,50,000 in 2072.
In the same year 300 live births took place. Calculate the Crude Birth Rate
(CBR).
Community Project Work
Find the Crude Birth Rate of your district and then compare it with the national
average. Give reasons as to why the CBR of your district is similar to or different
from the national average.
Oasis Social Studies and Population Education 8 247
9.3
Death and Migration
Pre-reading Activities
Read the news item and discuss the questions that follow.
An estimated 400,000 young people enter the labour market each year in Nepal
and, in the absence of decent employment opportunities within the country,
particularly in rural areas, migration to India and overseas for employment has
become an increasingly attractive option as well as a last resort for many youth. The
Department of Foreign Employment estimates that around 1,500 young Nepalese
leave for employment to countries other than India each day. The total that have
received formal approval to leave numbers 2.08 million.
Source: The Himalayan Times
a. Why are young people leaving the country?
b. How will the mass migration of people affect the population?
c. Is it good that young population is leaving the country for employment?
Reading
As you can see from the news above, 2.08 million is a significant portion of Nepal’s
population. Imagine what will happen to Nepal’s population if these young Nepalese
were to settle permanently in the host countries. Certainly, there will be changes in
Nepal’s population. Therefore, processes such as death and migration significantly
affect the population of a country.
1. Death: Death is the second most important process of demography. Death or
mortality rate refers to the total number of death per year in a population of
1000. Population is directly related to birth and death rates. If the birth rate
is higher than mortality rate, then population increases rapidly. In many
developing countries, birth rate tends to be higher than mortality rate. As a
result, the population growth rate of developing countries is higher than that of
developed countries. There are basically two indicators of death: Crude Death
Rate (CDR) and Infant Mortality Rate (IMR).
248 Oasis Social Studies and Population Education 8
Crude Death Rate (CDR): Crude Death Rate is defined as the total number
of death in a year per 1000 mid-year population of the same year. Subtracting
the Crude Death Rate from the Crude Birth Rate provides the rate of natural
increase, which is equal to the rate of population change in the absence of
migration. It is measured applying the following formula:
Total deaths in one year (D) x 1000
CDR = Mid-year population (P)
According to the World Bank, Nepal’s Crude Death Rate in the year 2017 was 6.24.
Infant Mortality Rate (IMR): Infant Mortality Rate is defined as the number of
deaths of infants under one year in a given year per 1,000 live births in the same
year. This rate is often used as an indicator of the level of health in a country.
The IMR is calculated using the following formula:
IMR = No. of death of infant in one year (D0-1) x 1000
Total no. of live births in the same year (B)
2. Migration: Migration is another important process that directly impacts demography.
Migration measurement includes the number of people who arrived in a geographical
area to settle there from outside in one year and the number of people who left the place
in the same period. To measure migration, we need to consider the in-migration and
out-migration of people in relation to a particular place.
In-Migration Rate : The In-migration Rate is calculated using the following
formula:
In-Migration Rate (IMR) = Total number of in-migrants in one year (I) x X 1000
Mid-year population (P)
Out-Migration Rate: To calculate the Out-Migration Rate, we have to take the
total number of people migrating from the place to other places and divide it by
the mid-year population of the place and multiply it by 1000.
Out-Migration Rate (OMR) = Total number out-migrants (O) x X 1000
Mid-year population (p)
However, in order to actually assess the impact of migration on demography,
we have to calculate the Net Migration Rate (NMR).
Net Migration Rate: Net Migration Rate is defined as the difference between
the number of persons entering and leaving place during the year per 1,000
midyear population. If the number is positive, it indicates that more people are
immigrating into the country or place than those who are leaving.
Free the Words
immigration : to come to a country to live
Oasis Social Studies and Population Education 8 249
In-class Activities
Take one year of your school record of student enrollment. Imagine that students who
came to your school from other schools are in-migrants. And students who left your
school for other schools are out-migrants. Now calculate:
a. In- Migration Rate
b. Out-Migration Rate
c. Net Migration Rate
Submit your report to your principal.
Exercise
1. Give reasons for each statement below.
a. Infant Mortality Rate indicates the health situation of a country.
b. European countries have positive Net Migrantion Rate.
c. Developing countries have negative Net Migrantion Rate.
d. Birth and mortality rates alone cannot describe the demography of a
country.
e. Infant Mortality Rate tends to be higher in rural areas.
2. Write long answers to the following questions.
a. In a village 40 infants died before the age of one year. If the population of
the village was 5000, calculate the Infant Mortality Rate of the village.
b. Differentiate between In-Migration Rate and Out-Migration Rate.
c. How are the following rates calculated?
i. Infant Mortality Rate
ii. Crude Death Rate
iii. In-migrantion Rate
iv. Out-migrantion rate
d. In 2072 B.S., the mid year population of a certain place was 80,000. In the
same year, 750 deaths took place. Find the Crude Death Rate (CDR) of that
place.
e. If the total population of a certain city in 2072 B.S. was 2,50,000. In that year,
25000 people came to city for settlement and 2,000 people migrated from
the city. Calculate the In-Migration Rate and Out-Migrated Rate of the city.
Community Project Work
Go to the webpage of the World Bank. Find out Infant Mortality Rates of the SAARC
countries. How does Nepal compare to other South Asian countries in terms of Infant
Mortality Rate? What do higher rate and lower rate indicate?
250 Oasis Social Studies and Population Education 8
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